Star Entertainment Group has successfully sold its Sheraton Grand Mirage Resort Gold Coast property for AUD 192 million. The Australian casino and hospitality giant faced regulatory challenges, leading to a decline in public trust and operating conditions. The property was acquired by the Karedis and Laundy families, known for their presence in the liquor and hospitality sectors, expanding their portfolio with this major acquisition. The sale was finalized on November 3, providing Star Entertainment with approximately AUD $60 million in net proceeds.
However, the hurdles for The Star are far from over. Following a review by Adam Bell SC in 2021, the NSW Independent Casino Commission identified numerous violations within the company’s operations in New South Wales. This resulted in significant fines, potential loss of the business license, and the implementation of remediation measures. The penalties and loss of public trust impacted the company’s overall performance.
Nevertheless, the remediation process seems to be progressing well, with 22 of the 30 Bell review recommendations already implemented as of August. The struggling casino and hospitality giant is committed to following the recommendations and addressing its shortcomings.
Additionally, Star Entertainment recently reached a tax relief agreement with the NSW government, aiming to improve its financial situation by reducing casino duty rates.
In a separate development, professional poker players criticized Star Entertainment for allegedly banning players without providing any explanation. This controversy caused difficulties for elite poker players due to WPT’s exclusive partnership with Star Entertainment.
Despite the challenges faced by Star Entertainment Group, the company remains focused on rectifying its operations, regaining trust, and improving its financial stability.